PepsiCo India to bring lay’s crispz & twitz to take on rivals

Beverage and snacks major PepsiCo India is rolling out Lay’s Crispz and Twitz, two sub-brands with Rs 5 entry-level packs, to take the brand to the masses.Ratna Bhushan | ET Bureau | January 09, 2016, 07:13 IST

Over two years ago, PepsiCo had initiated talks to buy Gujarat-based salty snacks major Balaji Wafers, but it had fizzed out on valuation.NEW DELHI: Beverage and snacks major PepsiCo India is rolling out Lay’s Crispz and Twitz, two sub-brands with Rs 5 entry-level packs, to take the brand to the masses and thwart competition from regional snack makers.

Over two years ago, PepsiCo had initiated talks to buy Gujarat-based salty snacks major Balaji Wafers, but it had fizzed out on valuation. Partho Chakrabarti, PepsiCo India’s vice-president for it snacks business, said the strategy was aimed at leveraging the brand’s strengths through multiple price points.

“Last year, we took Lay’s premium with Maxx. Now, we’re taking the brand mass with this differentiated potato-based snack,” Chakrabarti said. Crispz and Twitz, which are being rolled out as a pilot in some big cities in north India, will be sold at Rs 5 and Rs 20 mainly through general trade. The company plans to introduce them in tier-II and III town and cities later.

While Lay’s has been available at price points of Rs 2, 3 and 5, the new sub-brands are aimed at countering competition from regional salty snacks players. With sales in beverages slowing to low single digits, the New Yorkheadquartered firm is banking on snacks to grow its business in the country. “Consumers are opting for measured portions or single-serve packs in food as well, which used to be a phenomenon for beverages.

So, with affordable pricing and flavour expansion, this is a classic case of increasing category penetration and getting new users,” said Devendra Chawla, group president, food FMCG and brands, Future Group. Pepsico, which also makes Pepsi cola and Slice mango drink, is also scaling up its $1-billion-plus, high-margin Doritos snacks brand.

India’s Rs 8,700-crore salty snacks market is characterised by a large presence of unorganised players, besides rivals such as ITC’s Bingo, Parle, Balaji Wafers and Haldiram’s. Regional players operate on lower fixed costs, sell on lower price points, and bank heavily on localised flavours, which gives them an edge over multinationals.